The current account deficit fell to $0.57 billion in October 2022 due to continuously decreasing imports of the country.
According to data released by the State Bank of Pakistan (SBP), the current account deficit stood at $1.77 billion last year in October and $0.36 billion in the previous month of September 2022.
1/2 CAD was $ 0.57 billion in Oct 2022 against a deficit of $0.36 billion in Sep 2022. Continuous decline in imports helped improve the Current Account Deficit (CAD) during first four months of FY23. pic.twitter.com/SgkolTu4GV
— SBP (@StateBank_Pak) November 21, 2022
The continuous decline in imports helped improve the Current Account Deficit (CAD) during the first four months of FY23.
During the period of July-October 2022, the current account deficit stood at $2.8 billion against $5.3 billion recorded in a similar period of the last financial year as imports reduced by $2.7 billion (11.6 percent) and exports increased by $0.2 billion (2.6 percent) compared to the same period of 2021.
The trade deficit of the country in terms of commodities and services reduced to $11 billion during the said period as compared to $15 billion reported in the last year. Inflows of remittances, having significant support to the current account, also reduced to $9.9 billion during the period of July to October 2022 as compared to $10.8 billion reported in the same period of the last year due to the global economic slowdown which also affected overseas Pakistanis in many host countries.
The economic managers should not only maintain the declining trends of the country’s import bill but should also introduce out-of-box initiatives to revive inflows through exports and remittances to narrow down the current account deficit in the future.